Impact of Shakey’s Restaurant Managers’ Cognitive Ability on the Achievement of the Store Objectives

PART 1 – THE PROBLEM AND ITS BACKGROUND

Introduction

Any company needs a system of control and measurement. This is all the more true in the food industry, wherein the expected output is not only about taste or profitability, but also on several factors that could cause a multitude of praise or problems such as quality of service, effective controls, innovative product mix, brand image, etc (Profitable Tips For All Restaurant Owner, by Kevin Moll). Although the restaurant operations group, central office, administrative support, and upper management are all expected to be calibrated and to work in harmony, this type of business requires a funnel point, or local management whose role to act remotely on behalf of, but in full calibration with, upper management in terms of policy implementation, achieving store targets, local marketing, and other operational tasks. This funnel point is the Restaurant Manager (Ninemeier, Jack D.; Hayes, David K. (2006). Restaurant Operations Management: Principles and Practices. Upper Saddle River, N.J: Pearson Prentice Hal).

In recent years, it has been a recurring problem of the Shakey’s Philippines operations team that some of the Restaurants have not been meeting its target Quality, Service, Cleanliness, and Hospitality (QSCH) Score and Profitability Goals (Based on the 2012 Audit Scores). Although several initiatives have been rolled out to coach each employee’s performance, the consistency of the store’s QSCH scores and the achievement of target profitability have been directly linked with the performance of the respective Restaurant Manager (Store QSCH Score is included in Restaurant Manager’s total Performance Appraisal rate).

Although coaching initiatives and continuous improvement programs have been launched and maintained, the problem resurfaces when attrition happens. Whether the attrition is expected or unexpected, the fact is that new talent coming in, either from the outside or from within, will always face the same pitfalls and challenges, plus problems that have been newly developed or caused by the failure of the previous local management handling the store; this causes the aforementioned coaching and continuous improvement initiatives to be re-implemented and relearned, ending and beginning this loop again with attrition, even slowing down the effectiveness of improvement initiatives.

The process of learning and relearning, which is highly dependent on the Restaurant Managers’ cognitive ability, makes the difference when dealing with this loop(Schmidt, Hunter, and Outerbridge's (l986) causal model of job performance); it defines how much the Restaurant and, consequentially, the store itself can progress from the loop and continuously improve on its operational performance.

This study aims to understand the significance and relation of the Restaurant Managers’ cognitive ability on the achievement of store objectives, and to address such problems.

Background of the study

Schmidt, Hunter, and Outerbridge’s causal model of job performance suggests that cognitive ability is the most important cause of job performance and that the relationship between ability and performance is stable over time (Development of a Causal Model of Processes Determining Job Performance, Frank L Schmidt and John E. Hunter). Though there is a lack of studies that specifically discusses the impact or effect of Restaurant Managers’ cognitive ability on the store performance, the scope of the universal model developed by Schmidt, Hunter, and Outerbridge could be used for restaurant industry.

There are three factors to consider, before discussing the relationship between the Restaurant Managers’ cognitive ability and the performance of the stores the Managers respectively handle:

1. The Restaurant Manager’s Duties and Responsibilities needed to be accomplished, as well as...

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